LITIGATION AGAINST JIM AND JIM'S GROUP

"Never interrupt your enemy when he is making a mistake"

Napolean Bonaparte

DISCLOSED:

4.3       The Franchisor is involved in the following litigation:

(a)     A Brisbane Supreme Court proceeding no BS5616/07 initiated by Backyard Concepts Corporation Pty Ltd ACN 109 746 107 at trustee for the Backyard Concepts Unit Trust (plaintiff) against the franchisor (defendant). The plaintiff purchased the Jim's Irrigation division from third parties and now seeks over $332,636.71 being loss and damage arising out of alleged misleading and deceptive conduct made by the vendors. The status of the proceeding is that the parties are in the process of exchanging discoverable documents.

(b)     A Brisbane District Court proceeding no BD2172/2008 initiated by Neil and Ineke Barnard (plaintiff) against the franchisor (defendant). The plaintiffs were terminated because the Franchisee Survey conducted by the Company revealed that they were offering poor service to their franchisees. The plaintiffs have challenged the validity of this action and in their claim seek $90,000 plus costs plus interest for alleged breach of contract. The status of the proceeding is that the parties are in the process of exchanging discoverable documents.

There is one current proceeding against David James Penman, the sole director of Jim's Group Pty Ltd ACN 101 925 268. That is a Melbourne County Court proceeding no CI-08-05745 initiated by the plaintiff Adinelle Pty Ltd ACN 006 633 709 against Adam Christopher Price (the first defendant) and David James Penman (the second defendant). The plaintiff is the owner of premises which were leased to a company called Beach House Gyms Franchising (Australia) Pty Ltd (Beach House) by way of lease, the guarantors of which were the first and second defendants. Beach House is now in liquidation and the plaintiff now seeks to recover the outstanding rental and other costs totaling $109,383.67 from the guarantors. The status of the proceeding is that the parties are in the process of exchanging discoverable documents.


Plus several others not yet disclosed



A divisional franchisor in Australia has just served court papers on Jim for breach of contract and a hearing date will be set shortly.

 Plus.

IN THE UK:

The Divisional Franchisor has commenced proceedings against Jim Penman, Phil Maunder, Jim's Group and others for wrongful termination and conspiracy to defraud. The damages claimed exceed A$2 million. The blame game has begun, with Harrison blaming Penman and Maunder ( he was apparently just following orders!)

The three defendants ( see pictures below) will be called to appear in the High Court in London in 2010.

 
PENMAN- head in the clouds

MAUNDER-in a prickly situation

 

HARRISON- failed gamble
JUDGEMENT OBTAINED -MARCH 2010